When a demand letter is the right first move
A demand letter is the formal written request for payment or performance that you send before filing in Ontario Small Claims Court. Judges expect plaintiffs to have made a genuine effort to resolve the matter before filing, and a demand letter is the standard way to show that effort. It is also the cheapest legal step in your case: a properly worded letter often recovers the full amount without a hearing.
You should send a demand letter in Ontario when:
- A customer owes you for work completed, goods delivered, or services rendered.
- A former tenant or landlord owes you money (security deposit, damage deposit, unpaid rent).
- Someone damaged your property and has not paid.
- A contract was breached and you have documented the loss.
- A loan to a friend, family member, or colleague remains unpaid.
What an Ontario demand letter must include
Ontario does not prescribe a strict format for demand letters, but the following elements are what judges and paralegals look for:
- Clear identification of the parties. Your full legal name and address, and the full legal name and last known address of the other party.
- A concise statement of facts. What happened, in dates and amounts. No rhetoric.
- The amount claimed. Broken down — principal, interest (if contractual), and any costs you are entitled to claim.
- A specific deadline. A date by which payment must be received. Not “soon” or “promptly.”
- The consequence of non-payment. That you will file a Plaintiff's Claim (Form 7A) in the Ontario Small Claims Court without further notice.
- A method of delivery that you can prove. Registered mail, courier with signature, or traceable email.
What not to put in the letter
Demand letters go wrong when they become emotional. Avoid the following, which judges and opposing counsel exploit:
- Threats beyond the legal remedy you actually intend to pursue.
- Allegations of crime unless you are genuinely prepared to report to the police.
- Inflated amounts you cannot substantiate — the other side will read the letter into evidence at the hearing.
- Name-calling, insults, or accusations of bad faith without evidence.
After the deadline passes
If the recipient does not respond, does not pay, or refuses, your next step in Ontario is to file a Plaintiff's Claim (Form 7A) in the Small Claims Court for the judicial district where the defendant lives, operates, or where the cause of action arose. Small Claims Court handles monetary claims up to $35,000. Filing fees range from $108 to $290 depending on the amount and whether you are a frequent claimant.
BeProSe can generate the Form 7A from the same facts you used in the demand letter — another 10 minutes, not another drafting session.
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Start my free demand letter →Related Ontario resources on BeProSe
- Self-Represented Litigants in Ontario — the complete guide
- How to File a Notice of Motion in Ontario
- Landlord-Tenant Kit for Ontario LTB disputes
BeProSe is a document preparation service, not a law firm. We do not provide legal advice. Always review documents with a licensed Ontario lawyer or LSO-licensed paralegal before sending or filing.